Which of the Following Statements Seems Most Correct About a Firm

question 3

Multiple Choice

Which of the following statements seems most correct about a firm that has made a cash tender offer for two million shares of ABC Corp.at a price of $20, which is $6 higher than ABC's current value?

• A)The economic gain of the merger exceeds $40 million.
• B)The economic gain of the merger exceeds $28 million.
• C)The economic gain of the merger exceeds $12 million.
• D)The economic gain of the merger would be zero after accounting for merger cost.

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Definitions:

Comfort

A state of physical and emotional ease, often achieved through supportive environments or relationships.

Security

Measures or protocols taken to ensure the safety and protection of assets, data, and individuals from theft, harm, or other threats.

Need For Change

The requirement or motivation for making alterations or adjustments in one's personal life, work environment, or society.

Potential Value

The inherent worth or usefulness that something might have under certain conditions, often considered in investments and project planning.